Well, here a “4 points” inspection is routine for new insurance....plumbing, electrical, hvac and roof, on homes of a certain age anyway.
On he last property that we bought, the insurance company had an inspector do an on site inspection. It was not a big deal at all. I had the inspection delayed for a couple of weeks so that I could have a new HVAC system installed first.
It makes sense to me that they would want an inspection , and I am glad, so that my premium doesn't have to be more expensive, just because they also insure some sub-standard properties, that have a bigger chance of making a claim.
The insurance company just wants to see what they are insuring, so that they can know if they want it or not. We do they same thing as prospective property buyers.
Originally posted by @Nicholas Weckstein :
@Nick Heil thanks for the reply. See that’s my worry. New policy takes place on the 21st but the inspection isn’t done yet. I can’t run that risk.
Ironic you said space heaters because the heating is electric baseboard which I’m not sure is the same but seems like it. I just don’t need an inspector poking around telling me I have to do certain things. Just going to stay with Allstate. Could have saved around $450 a year but not worth the hassle
No problem! I certainly understand avoiding the hassle. Try getting connected with a local independent agent in your area that can go to multiple companies at once. They could do the majority of the leg work for you and even do the inspection themselves (and send the inspection to multiple companies). Could save you a lot of money and also get you a professional coverage review.
Nicholas since the rate is much lower not just a little it sounds like they will be a stickler for property condition. If an investor pays a higher premium they can usually price in more claim risk and unknowns.
We get these on commercial retail centers for my clients. Some insurance companies have an ISO inspector before the purchase and some wait until after closing. If after closing in fine print they reserve the right to inspect and change the policy quote. This is because investors might have property conditions they are not even aware of or they have issues they know of but omit from the paperwork they fill out to get a quote.
Insurance companies have been around the block a few times. Investors sometimes think they can get a cheap policy and then drop big ticket claims on the insurance. When insurance companies have insured hundreds to thousands of policies or more they get seasoned pretty quickly.
I have found this on commercial loans also with LTV and risk. If buyer is putting a bunch down then they tend to ask less questions. If LTV is 75% and cap rate is lower the lender asks tons of questions and is very strict on underwriting.
Those rates seem reasonable but it depends on the property.
Many insurance companies do inspections. Note that what they look for is different than what say a building code officer is looking for.
Moving forward, I would just work with an insurance broker to get the policies. Just do a shot gun and get the best policy that fits your needs.
Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information